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"But when confronted with Justice McHugh's report, I believe there is no other alternative."

The report, handed to the government last week, found that between 48,000 and 68,000 greyhounds were killed in the past 12 years because they were deemed uncompetitive.

Up to 20 per cent of trainers use live baiting, and 180 dogs a year suffer catastrophic injuries such as skull fractures and broken backs, the damning report found.

The industry responded by suspending racing for seven days as its members come to terms with Thursday's announcement.

GRNSW said the decision would rock everyone involved with the sport, including the thousands of responsible participants "who treat their greyhounds like family".

"These people were as dismayed as others by the exposure of completely unacceptable and inhumane practices within greyhound racing."

The organisation said it had made significant reforms following the live-baiting scandal.

"GRNSW had taken decisive action as it strived to recover community trust and believed that its reforms and strategic direction could have transformed the sport into a stronger sustainable one in which animal welfare and integrity were fundamental to a vibrant future," it said.

Greyhound racers weren't the only ones caught off guard by the Baird government.

Some animals rights advocates admitted they didn't expect the ban they've long called for, but warmly welcomed it.

Mr Baird insisted government-owned tracks and facilities will be used by the community and the government will announce a detailed industry shutdown plan later in the year and has vowed to support industry members through the change.